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Government brings forward increase in state pension age

The Government has decided to bring forward the increase in the state pension age to 68 by seven years.

Adopting the recommendations of the Cridland review into state pension increases, the Government has confirmed that the state pension age will rise from 67 to 68 from 2037.

Speaking in the House of Commons today, Work and Pensions Secretary David Gauke said that the Government had to “face up to this long-term challenge not pretend it doesn’t exist.”

Gauke said that under Labour’s proposed timetable, state pension spending would be £20bn a year higher.

The Government added in a press release that “those affected by this proposed timetable will on average still receive more state pension over their lifetime than generations before them.”

By October 2020, the Government had already committed to increasing the state pension age from 65 to 66. By 2028 this was set to rise to 67 and then 68 by 2046.

Old Mutual Wealth head of retirement policy Jon Greer says: “Government deserve some credit for biting the bullet and taking the unpopular decision to increase the state pension age. However, it appears they were not convinced that more creative solutions were administratively viable.

Article taken from Money Marketing 19th July 2017

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